BIR Ruling No. 658-2017

BUREAU OF INTERNAL REVENUE REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE

Quezon City

Certificate of Tax Exemption No: 638-30 17

CERTIFICATE OF TAX EXEMPTION

TO ALL WHOM IT MAY CONCERN:

Company), with Tax Identification Number creditable withholding tax on its income received directly in connection with its project, Ponte Verde de Sto. Tomas Phase 2 and Phase 3, consisting of 25 housing units located at Barangays San Rafael and Santiago. Sto. Tomas, Batangas, a project duly registered with the Board of is carlier, but in no case earlier than the date of registration of the project with the BOI, pursuant Investments (BOI) under Registration No. years beginning from January 2016 or actual start of commercial operations/selling. whichever to Exccutive Order (E.O.) No. 226, otherwise known as the "Omnibus Investments Code of 1987" and Sec. 2.57.5 (B)(2) of Revenue Regulations No. 2-98, as amended. This certifies that ST. FRANCIS SQUARE REALTY CORPORATION (the dated October 29, 2015 for a period of 3 is exempt from income tax and

and below. is VA'T-exempt under Section 109(1)(P) of the 1997 Tax Codc, as amended Moreover, any sale by the Company of residential dwellings valued at P3,199,200.00

applicable BIR rules and regulations and thc Terms and Conditions stated at the back hereof. The Company is liable, however, for all other applicabie taxes not discussed above. The grant of tax exemption herein is subject to the compliance with the provisions of

This Certificate of Tax Exemption is being issued on the basis of the facts and documents

arc different, then this Certificate shall be considered null and void. as represented and submitted. However, if upon investigation, the BIR ascertains that the facts

Issued this. day of DEC 19 2017

N GN CAESAR R. DULAY

K-1-RFR Commissioner of Internal Revenue 01 19.2.2

Page 2 of 2 St. Francis Square Realty Corporation Date issued 12- 19-2017 CTE No. 658-2017

OF THE CERTIFICATE OF TAX EXEMPTION TERMS AND CONDITIONS

1. The exemption from income and creditable withholding taxes covers only income directly

attributabie to the revenues generated from the project, Ponte Verde de Sto. Tomas Phase 2 and Phase 3, consisting of 25 housing units, located at Barangays San Rafacl and Santiago. Sto. Tomas, Batangas. Such exemption shall not cover revenues from units with selling price exceeding P3.000.000.00.

2. The Company is obligated to construct and sell 25 housing units based on the following

schedules/sales revenues:

Year (No. of Units) Volume Value (PhP)

Total 2 3 2 U 8 1

3 In the computation of the project's ITH, interest income from in-house financing shali not be considered as part of the revenues generated from the registered housing project.

4. The Company's entitlement to ITH for its BOI-registered housing project is subject to the compliance with the provisions of the Specific Terms and Conditions of its BOi Registration.

5 Pursuant to Section 4 of Republic Act (R.A.) No. 10708', the Company is required to file its tax returns and pay its tax liabilities, on or before the deadline as provided under the 1997 as may be provided under E.0. No. 226, within the periods prescribed under R.A. 10708's Implementing Rules and Reguiations and Joint Memorandum Circular No. 1-2016 dated September 1.2016. Tax Code, as amended, using the electronic system for filing and payment of taxes of the incentives, VAT and duty exemptions, deductions, credits or exclusions from the tax base. BIR. It shall file with BOI a complete annual tax incentives report of its income-based tax

The Company shall be constituted as a withholding agent for the government if it acts as withholding tax, or if it makes payments to individuals or corporations subject to the withholding taxes as source as required under Chapter XIII and Section 57 of the Tax Code of 1997. as amended and implemented by Revenue Regulutions (R. R.) No. 2-98, as amended. empioyer and any of its employees received compensation income subject to compensation

7. The Company is required to file on or before the 15th day of the fourth month following the the taxable year. close of its accounting period of a Profit and Loss Statement and Balance Sheet with the Annual Information Return under oath, stating its gross income and expenses incurred during

8 Finally, the Company's books of accounts and other pertinent records shall be subject to periodic examination by revenue enforcement officers of this Bureau for the purpose of ascertaining whether it is compiying with the conditions under which it has been granted tax exemption or tax incentives and its tax liability, if any, pursuant to Section 235 of the Tax Code of 1997, as amended.

Investment Promotion Agencies. : An Act Enhancing Transparency in the Management and Accounting of Tax Incentives Administered by